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Will CBDCs see governments take control of crypto?

Will CBDCs see governments take control of crypto?
  • For the industry to see mainstream adoption, there is a massive need for transparency and a robust regulatory field.
  • In response to the latter, central bank digital currencies have arisen over the past year or so and seem to be an answer.

For the industry to see mainstream adoption, there is a massive need for transparency and a robust regulatory field. In response to the latter, central bank digital currencies have arisen over the past year or so and seem to be an answer. However, whilst cryptocurrency benefits due to its decentralised nature, there are many governments all across the world that still value control and centralisation when it comes to these unknown and volatile assets.

A senior fellow at Cato Institute’s Center for Monetary and Financial Alternatives, Larry White recently spoke in a podcast where he talked on cryptocurrency and CBDCs. White cited what it means to the world of finance and also noted some of the fundamental issues that concepts like bitcoin have on the idea of so-called free banking.

Specifically, White went on to talk about this concept saying, “the limitation of bank services that was entailed by giving out little monopolies led to a popular reform movement called free banking.”

With digital assets such as bitcoin being analysed by many governments all over the world, they are not controlled by any single person or authority. These CBDCs are often seen as the solution that fixes such a problem.

White went on to say the following:

“We do have something in the form of relatively unregulated banking today. And that’s offshore banking, so many, jurisdictions, they’re not always sovereign nations sometimes they’re protectorates or something like that.”

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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